BNP Paribas to Buy United California Bank

The acquisition would have a limited impact on BNP Paribas’ financial profile while it would double the size of the group’s already successful retail banking operations in California, providing opportunities for significant cost cutting and synergies. The negative impact on BNP Paribas’ capital base should be contained. Despite the $2.4 billion cash price and expected goodwill of EUR1.5 billion, BNP Paribas is expected to restore its Tier 1 Bank for International Settlements ratio to above its 7% medium-term target by mid-year 2002. UCB has a sound financial profile, characterized by strong capitalization and asset quality, as well as good and stable profitability. The acquisition is subject to the appropriate regulatory approvals.

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